Adjustable-rate mortgages, one of the main culprits of the housing crisis, are back in vogue. But banks say this time is different. Financial groups are sweetening terms to entice customers to take out these loans, known as ARMs, whose rates can jump after a few years. Some ARMs are cheaper, when compared with fixed-rate mortgages, than they have been in more than a decade. The tactics are reminiscent of the period before the 2008 crisis, when ARMs exploded in popularity as banks and mortgage brokers touted … [Read more...]

Though the gap is narrowing, buying costs less than renting in all 100 large U.S. metros. But uncertainty about future home price appreciation means buying isn’t always a safe bet. Homeownership remains cheaper than renting nationally and in all of the 100 largest metro areas. Rising mortgage rates and home prices have narrowed the gap over the past year, though rates have recently dropped and price gains are slowing. Now, at a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally, versus … [Read more...]

Younger home buyers tend to view their home as a strong investment, more so than older buyers who tend to view their homes as a match to their lifestyle, according to the 2014 NAR Home Buyer and Seller Generational Trends study, based on a survey of more than 8,700 responses from buyers and sellers. The survey provided an in-depth look at the generational differences of recent home buyers and sellers. The largest group of recent buyers is millennials, those under the age of 34, who comprised 31 percent of … [Read more...]

Home values climbed across metro Phoenix again in 2013, and many neighborhoods saw double-digit increases. More than half of all the ZIP codes in Maricopa and Pinal counties posted their biggest annual increase in home prices since the crash, according to The Arizona Republic's latest Valley Home Values Report. The median sales price was $205,000 on Dec. 31, compared with $164,000 in December 2012. Prices also rose 35 percent in 2012, meaning prices are back to about 2003 levels for most people. Overall, … [Read more...]

Home prices still look reasonable compared with rents What’s up with the housing recovery? There are disturbing signs that the big rally that began in 2011 slammed on the brakes, big-time, in the final months of last year. Pending home sales—probably the best leading indicator of the housing market—plunged 9% between November and December, to their lowest level in more than two years, according to the National Association of Realtors. Average sales prices have fallen about 5% since the summer, says the NAR. … [Read more...]